HomeMy WebLinkAbout10-53 - Amending Solid Waste Hauling Franchise Fee0
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RESOLUTION NO. 10-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF COSTA MESA, CALIFORNIA, AMENDING THE
SOLID WASTE HAULING FRANCHISE FEE.
THE! CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the City Council of the City of Costa Mesa adopted Ordinance No.
04-12 on November 1, 2004, that requires solid waste enterprises operating within the
City to obtain a City franchise and pay a franchise fee; and
WHEREAS, Ordinance No. 04-12 also provides in Municipal Code section 8-87
(c) that the amount of the franchise fee will be set by City Council resolution and the
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City Council hereby desires to set a new fee amount and adopt related procedural
provisions for the fee's computation and collection.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COSTA, MESA AS FOLLOWS:
SECTION 1. FRANCHISE FEE.
al The previously adopted franchise fee is hereby increased to the amount
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of 16% of the annual gross receipts of a franchisee from its business
conducted in the City of Costa Mesa. For the purpose of this resolution,
gross receipts' means and includes all monies, fees, charges,
consideration, and revenue received by, or imputed to the franchisee and
any affiliates, parent companies, subsidiaries and/or subcontractors of the
franchisee, in connection with, arising from, or in any way attributable to the
services carried out by or on behalf of the franchisee pursuant to a
franchise granted under Costa Mesa Municipal Code section 8-87.
This fee shall be paid quarterly by each franchisee to the City Finance
Department ("Department"). Each payment shall be due within 30 days of
the end of each calendar quarter, i.e. payments for the four quarters shall
be due on April 30, July 30, October 30, and January 30 of each calendar
year. Whenever the last day of a fixed and final period falls on a
Saturday, Sunday or other legal Holiday, the due date will be extended to
5:00 pm of the next business day. Franchisees shall include with each
payment the financial data requested by the Department for verifying that
the amount of the fee complies with this resolution.
c. The franchisee shall pay a penalty for any late payment of a franchise fee
in the amount of 5% of the delinquent franchise fee owed, plus an
additional 1 1/2 % of the fee for each month, or any portion of a month,
that the payment is late.
SECTION 2. FINANCIAL AUDITS OF FRANCHISEES.
a. The Department may order a financial audit of any franchisee pursuant to
Costa Mesa Municipal Code ("CMMC") section 8-87 (f). The ,City Audit
shall include a review of the franchisee's cash receipts records, solid waste
tonnage collection, diversion, and other related records, as well as those of
each of its parent, subsidiary and/or affiliate companies, as appropriate, to
determine the franchisee's gross receipts, the accuracy of franchise fees
paid, and such other information as shall be deemed appropriate by the City
Finance Director to evaluate the franchisee's compliance with section 8-87.
In connection with a City Audit, franchisees shall make available for review
at their business offices detailed account records, such as the names and
addresses of customers.
b. If a City Audit determines a franchisee has not paid its full franchise fee,
the City shall invoice the franchisee for the amount of the net deficiency
plus a penalty fee equal to twenty percent (20%) of the net deficiency.
c. A franchisee shall reimburse the City for the cost of a City Audit if the
audit determines that the franchise fee for the audited period(s) has been
underpaid in excess of five percent (5%) of the total required fee. Such
reimbursement shall be paid by the franchisee within thirty (30) days of
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the date the City notifies the franchisee in writing of the amount of the
City's cost of the audit.
SECTION 3. REPEAL OF PRIOR RESOLUTION. Effective October 1, 2010,
City Council resolution No. 04-74 establishing the prior franchise fee for commercial
waste haulers doing business in the City of Costa Mesa shall be repealed.
SECTION 4. EFFECTIVE DATE OF FRANCHISE FEE. The franchise fee rate
set by this Resolution shall commence on October 1, 2010, and the first quarter fees
shall be due to the City on January 30, 2011. Failure to pay any franchise fees or
penalties assessed to a franchisee shall constitute grounds for revocation of the
franchise pursuant to CMMC section 8-79.
PASSED AND ADOPTED this 6t" day of July, 2010.
ATTEST:
Jug Folcik, C y Clerk
J
AI an R. Mansoor, Mayor
APPROVED AS TO FORM:
Kimberly Hall Barlow, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 10-53 and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 6th day of July, 2010, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS
MANSOOR, LEECE, BEVER, MONAHAN
NONE
FOLEY
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 13th day of July, 2010.
(SEAL)
JULIE OLCIK, CITIV CLERK
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